Proven and Probable reserves at La Colorada increased by 26% to 81.4 M
oz Ag
(All amounts expressed in US$ unless otherwise indicated)
VANCOUVER, Jan. 30, 2014 /CNW/ - Pan American Silver Corp. ("Pan American" or the "Company") (PAAS: NASDAQ) (PAA: TSX) After another year of successful exploration,
the La Colorada mine in Zacatecas, Mexico increased its proven and
probable silver mineral reserves to 81.4 million ounces, an increase of
26% compared to the year before. Net of 2013 silver production, the
mine added an estimated 16.7 million ounces of new silver reserves
during the year. The updated mineral reserve and resource estimate for
La Colorada as of December 31, 2013 is as follows:
|
Proven and Probable Reserves(2),(3)
|
Category
|
Tonnes (Mt)(1)
|
Ag g/mt
|
Ag (Moz)(1)
|
Au g/mt
|
Pb %
|
Zn %
|
Proven
|
2.4
|
406
|
31.2
|
0.31
|
1.35
|
2.47
|
Probable
|
4.1
|
378
|
50.2
|
0.39
|
1.30
|
2.35
|
Total Reserves
|
6.5
|
388
|
81.4
|
0.36
|
1.32
|
2.40
|
|
|
|
|
|
|
|
|
Measured and Indicated Resources(2),(3)
|
Category
|
Tonnes (Mt)(1)
|
Ag g/mt
|
Ag (Moz)(1)
|
Au g/mt
|
Pb %
|
Zn %
|
Measured
|
0.4
|
164
|
2.2
|
0.15
|
0.40
|
0.65
|
Indicated
|
1.7
|
255
|
13.8
|
0.29
|
0.51
|
0.83
|
Total M&I Resources
|
2.1
|
237
|
16.0
|
0.26
|
0.49
|
0.80
|
|
|
|
|
|
|
|
|
Inferred Resources(2),(3)
|
Category
|
Tonnes (Mt)(1)
|
Ag g/mt
|
Ag (Moz)(1)
|
Au g/mt
|
Pb %
|
Zn %
|
Total Inferred Resources
|
2.9
|
265
|
24.5
|
0.42
|
1.34
|
2.17
|
|
|
Notes:
|
(1) Rounded to the nearest hundred thousand.
|
|
(2) Metal prices used: Ag: $22/oz, Au: $1,300/oz, Pb: $1,950/tonne, Cu:
$6,800/tonne, Zn $1,850/tonne
|
|
(3) Mineral reserves and mineral resources have been reported
separately. Mineral resources do not have demonstrated economic
viability.
|
|
|
In the past five years, Pan American has discovered 86 million ounces of
new proven and probable silver mineral reserves at La Colorada, mainly
in the NC2 and Amolillo veins. Based on this exploration success, the
Company announced on December 18, 2013 ("Pan American Silver to expand
its La Colorada mine") a mine expansion plan to increase estimated
annual silver production from current 4.6 million ounces (2013) to 7.7
million ounces in 2018 when the full expansion project is completed.
Comprehensive details regarding this expansion project are outlined in a
preliminary economic assessment technical report ("PEA") which was published today on SEDAR (Technical Report, Preliminary
Economic Analysis for the Expansion of the La Colorada Mine, Zacatecas,
Mexico. Effective date December 31, 2013).
Pan American will release a detailed reserve and resource update for all
of its operations on February 19, 2014.
The PEA completed for the expansion project is based on La Colorada's
mineral reserves and resources as of December 31, 2012 adjusted for
production information available as of mid-2013. The PEA is preliminary
in nature and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the results of the PEA, including
the expanded mine plan and production forecasts described herein, will
be realized. Mineral resources that are not mineral reserves have no
demonstrated economic viability.
The Company's decision to expand the La Colorada mine as described
herein and in our press release of December 18, 2013 is not based on a
feasibility study of mineral reserves demonstrating economic and
technical viability and as such may be subject to increased uncertainty
and risks.
Technical information contained in this news release with respect to Pan
American has been reviewed and approved by Michael Steinmann, P.Geo.,
Executive VP Corporate Development & Geology, and Martin Wafforn,
P.Eng., VP Technical Services, who are the Company's Qualified Persons for the purposes of NI 43-101.
About Pan American Silver
Pan American Silver's mission is to be the world's pre-eminent silver
producer, with a reputation for excellence in discovery, engineering,
innovation and sustainable development. The Company has seven operating
mines in Mexico, Peru, Argentina and Bolivia. Pan American also owns
several development projects in the USA, Mexico, Peru and Argentina.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN OF THE STATEMENTS AND INFORMATION IN THIS NEWS RELEASE
CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE
UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
"FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN
SECURITIES LAWS. ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL
FACT, ARE FORWARD-LOOKING STATEMENTS OR INFORMATION. WHEN USED IN THIS
NEWS RELEASE THE WORDS, "ESTIMATES", "PLANS", "FORECASTS", "POTENTIAL"
"WILL" AND OTHER SIMILAR WORDS AND EXPRESSIONS IDENTIFY FORWARD-LOOKING
STATEMENTS OR INFORMATION. THESE FORWARD-LOOKING STATEMENTS OR
INFORMATION RELATE TO, AMONG OTHER THINGS: OUR MINERAL RESERVE AND
RESOURCE ESTIMATES, OUR PLANS TO EXPAND THE LA COLORADA MINE, OUR
EXPANDED MINE PLAN AND PRODUCTION FORECASTS.
THESE STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH RESPECT TO
FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS
THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY
SUBJECT TO SIGNIFICANT OPERATIONAL, BUSINESS, ECONOMIC AND REGULATORY
UNCERTAINTIES AND CONTINGENCIES. THESE ASSUMPTIONS INCLUDE: TONNAGE OF
ORE TO BE MINED AND PROCESSED; ORE GRADES AND RECOVERIES; PRICES FOR
SILVER, GOLD AND BASE METALS; CAPITAL, DECOMMISSIONING AND RECLAMATION
ESTIMATES; THE ACCURACY OF OUR MINERAL RESERVE AND RESOURCE ESTIMATES
AND THE ASSUMPTIONS UPON WHICH THEY ARE BASED; PRICES FOR ENERGY
INPUTS, LABOUR, MATERIALS, SUPPLIES AND SERVICES (INCLUDING
TRANSPORTATION); NO LABOUR-RELATED DISRUPTIONS AT ANY OF OUR
OPERATIONS: NO UNPLANNED DELAYS IN OR INTERRUPTIONS IN SCHEDULED
PRODUCTION; ALL NECESSARY PERMITS, LICENCES AND REGULATORY APPROVALS
FOR OUR OPERATIONS ARE RECEIVED IN A TIMELY MANNER; AND OUR ABILITY TO
COMPLY WITH ENVIRONMENTAL, HEALTH AND SAFETY LAWS. THE FOREGOING LIST
OF ASSUMPTIONS IS NOT EXHAUSTIVE.
THE COMPANY CAUTIONS THE READER THAT FORWARD-LOOKING STATEMENTS AND
INFORMATION INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS THAT MAY CAUSE ACTUAL RESULTS AND DEVELOPMENTS TO DIFFER
MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS OR INFORMATION. SUCH RISKS AND UNCERTAINTIES INCLUDE, BUT
ARE NOT LIMITED TO: FLUCTUATIONS IN SILVER, GOLD AND BASE METALS
PRICES; FLUCTUATIONS IN PRICES FOR ENERGY INPUTS, LABOUR, MATERIALS,
SUPPLIES AND SERVICES (INCLUDING TRANSPORTATION); FLUCTUATIONS IN
CURRENCY MARKETS (SUCH AS THE CANADIAN DOLLAR AND MEXICAN PESO VERSUS
THE U.S. DOLLAR); OPERATIONAL RISKS AND HAZARDS INHERENT WITH THE
BUSINESS OF MINING (INCLUDING ENVIRONMENTAL ACCIDENTS AND HAZARDS,
INDUSTRIAL ACCIDENTS, EQUIPMENT BREAKDOWN, UNUSUAL OR UNEXPECTED
GEOLOGICAL OR STRUCTURAL FORMATIONS, CAVE-INS, FLOODING AND SEVERE
WEATHER); DEVELOPMENT, MINING OR PRODUCTION PLANS ARE DELAYED OR DO NOT
SUCCEED FOR ANY REASON; RISKS RELATING TO THE CREDIT WORTHINESS OR
FINANCIAL CONDITION OF SUPPLIERS, REFINERS AND OTHER PARTIES WITH WHOM
THE COMPANY DOES BUSINESS; INADEQUATE INSURANCE, OR INABILITY TO OBTAIN
INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS;
RELATIONSHIPS WITH, AND CLAIMS BY, LOCAL COMMUNITIES AND INDIGENOUS
POPULATIONS; OUR ABILITY TO OBTAIN ALL NECESSARY PERMITS, LICENSES AND
REGULATORY APPROVALS IN A TIMELY MANNER; CHANGES IN NATIONAL AND LOCAL
GOVERNMENT, LAWS, TAXATION, CONTROLS, REGULATIONS AND GOVERNMENT
PRACTICES, INCLUDING ENVIRONMENTAL, EXPORT AND IMPORT LAWS AND
REGULATIONS, POLITICAL OR ECONOMIC DEVELOPMENTS, PARTICULARILY IN
MEXICO AND CANADA; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES
AS MINING OCCURS; CHANGES IN THE PARAMETERS OF THE LA COLORADA MINE TO
DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; ESCALATION OF
CAPITAL AND OPERATING COSTS; INCREASED COMPETITION IN THE MINING
INDUSTRY FOR EQUIPMENT AND QUALIFIED PERSONNEL AND THEIR COSTS; AND
THOSE FACTORS IDENTIFIED UNDER THE CAPTION "RISKS RELATED TO PAN
AMERICAN'S BUSINESS" IN THE COMPANY'S MOST RECENT FORM 40-F AND ANNUAL
INFORMATION FORM FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION AND CANADIAN SECURITIES REGULATORY AUTHORITIES. ALTHOUGH THE
COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE
ACTUAL RESULTS TO DIFFER MATERIALLY, THERE MAY BE OTHER FACTORS THAT
CAUSE RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED, DESCRIBED OR
INTENDED. INVESTORS ARE CAUTIONED AGAINST UNDUE RELIANCE ON
FORWARD-LOOKING STATEMENTS AND INFORMATION. FORWARD-LOOKING STATEMENTS
AND INFORMATION ARE DESIGNED TO HELP READERS UNDERSTAND MANAGEMENT'S
CURRENT VIEWS OF OUR NEAR AND LONGER TERM PROSPECTS, AND MAY NOT BE
APPROPRIATE FOR OTHER PURPOSES. THE COMPANY DOES NOT UNDERTAKE ANY
OBLIGATION TO UPDATE OR REVISE FORWARD-LOOKING STATEMENTS OR
INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR
OTHERWISE, EXCEPT TO THE EXTENT REQUIRED BY LAW.
CAUTIONARY NOTE FOR U.S. INVESTORS
THIS NEWS RELEASE HAS BEEN PREPARED IN ACCORDANCE WITH THE REQUIREMENTS
OF CANADIAN SECURITIES LAWS, WHICH DIFFER FROM THE REQUIREMENTS OF U.S.
SECURITIES LAWS. UNLESS OTHERWISE INDICATED, ALL ESTIMATES INCLUDED IN
THIS NEWS RELEASE HAVE BEEN BASED UPON MINERAL RESOURCE ESTIMATES
PREPARED IN ACCORDANCE WITH CANADIAN NATIONAL INSTRUMENT 43-101 -
STANDARDS OF DISCLOSURE FOR MINERAL PROJECTS (''NI 43-101'') AND THE
CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM CLASSIFICATION
SYSTEM. NI 43-101 IS A RULE DEVELOPED BY THE CANADIAN SECURITIES
ADMINISTRATORS THAT ESTABLISHES STANDARDS FOR ALL PUBLIC DISCLOSURE AN
ISSUER MAKES OF SCIENTIFIC AND TECHNICAL INFORMATION CONCERNING MINERAL
PROJECTS.
CANADIAN STANDARDS, INCLUDING NI 43-101, DIFFER SIGNIFICANTLY FROM THE
REQUIREMENTS OF THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
(THE "SEC"), AND INFORMATION CONCERNING MINERALIZATION, DEPOSITS, AND
MINERAL RESOURCE INFORMATION CONTAINED OR REFERRED TO HEREIN MAY NOT BE
COMPARABLE TO SIMILAR INFORMATION DISCLOSED BY U.S. COMPANIES. IN
PARTICULAR, AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
ESTIMATES INCLUDED IN THIS NEWS RELEASE HAVE BEEN BASED UPON "MEASURED
RESOURCES", ''INDICATED RESOURCES'' AND ''INFERRED RESOURCES''. U.S.
INVESTORS ARE ADVISED THAT, WHILE SUCH TERMS ARE RECOGNIZED AND
REQUIRED BY CANADIAN SECURITIES LAWS, THE SEC DOES NOT RECOGNIZE THEM.
UNDER U.S. STANDARDS, MINERALIZATION MAY NOT BE CLASSIFIED AS A
''RESERVE'' UNLESS THE DETERMINATION HAS BEEN MADE THAT THE
MINERALIZATION COULD BE ECONOMICALLY AND LEGALLY PRODUCED OR EXTRACTED
AT THE TIME THE RESERVE DETERMINATION IS MADE. U.S. INVESTORS ARE
CAUTIONED NOT TO ASSUME THAT ANY PART OF A "MEASURED RESOURCE" OR
"INDICATED RESOURCE" WILL EVER BE CONVERTED INTO A "RESERVE". U.S.
INVESTORS SHOULD ALSO UNDERSTAND THAT "INFERRED RESOURCES" HAVE A GREAT
AMOUNT OF UNCERTAINTY AS TO THEIR EXISTENCE AND GREAT UNCERTAINTY AS TO
THEIR ECONOMIC AND LEGAL FEASIBILITY. IT CANNOT BE ASSUMED THAT ALL OR
ANY PART OF "INFERRED RESOURCES" EXIST, ARE ECONOMICALLY OR LEGALLY
MINEABLE OR WILL EVER BE UPGRADED TO A HIGHER CATEGORY. UNDER CANADIAN
SECURITIES LAWS, ESTIMATES OF "INFERRED RESOURCES" MAY NOT FORM THE
BASIS OF FEASIBILITY OR PRE-FEASIBILITY STUDIES EXCEPT IN RARE CASES.
DISCLOSURE OF "CONTAINED OUNCES" IN A MINERAL RESOURCE IS PERMITTED
DISCLOSURE UNDER CANADIAN SECURITIES LAWS. HOWEVER, THE SEC NORMALLY
ONLY PERMITS ISSUERS TO REPORT MINERALIZATION THAT DOES NOT CONSTITUTE
"RESERVES" BY SEC STANDARDS AS IN PLACE TONNAGE AND GRADE, WITHOUT
REFERENCE TO UNIT MEASURES. ACCORDINGLY, INFORMATION CONCERNING MINERAL
DEPOSITS SET FORTH HEREIN MAY NOT BE COMPARABLE WITH INFORMATION MADE
PUBLIC BY COMPANIES THAT REPORT IN ACCORDANCE WITH U.S. STANDARDS.
SOURCE Pan American Silver Corp.